Economic Planning in India : Introduction, Achievements and Failures

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Friends, in this post we shall discuss about the Economic Planning of India. It's achievements and failures.Before going into details, lets start with the introduction.

Economic Planning : As you know, the planning is nothing but to make decisions with respect to the use of available resources. The Economic planning is nothing but the long term plans of Government to co-ordinate and develop the economy. In India the eeconomic planning was started in the year 1950.

Objectives of Economic Planning :

• Economic Growth
• To reduce the economic inequalities
• Balanced regional development
• Modernization
• Reduction of Unemployment

Planning Commission of India :

• It is an institution of Government of India which formulates India's Five Year plans. 
• Head Quarters : Yojana Bhawan, Sansad Marg, New Delhi - 110001
• Chariman : Manmohan Singh (Prime Minister)
• Deputy Chairman : Montek Singh Ahluwalia
• Member Secretary : Rajeev Ratna Shah

Important Points to Remember :

• First Industrial Resolution Policy in India - 1948 
• New Industrial Policy - 1991
• Planning Commission was set up in - 1950
• First Five year plan was started from - 1951
• Major aim of planning - To improve standards of living of people
• Removal of Poverty (Garibi Hatao) - 4th Five Year Plan (Indira Gandhi)
• Total Plan outlay for 11th Five Year Plan (2007-12) - Rs. 36,44,000 Crores
• Growth Rate for 11th Five Year Plan - 9% to 10%

Economic Planning in India :

• General Objectives :
• To improve national income and raise the standard of living in the country. 
• To attain rapid industrialization with an emphasis on basic and heavy industries.
• To create and expand employment opportunities.
• To ensure distributional justice through reduciton in inequalities in income and wealth.
• To increase employment opportunities.
• Specific Objectives :
• 1st Five Year Plan (1951-56) - Priority of Agriculture 
• 2nd Five Year Plan (1956-61) - Priority of Industries Sector
• 3rd Five Year Plan (1961-66) - Self Reliance
• 4th Five Year Plan (1969-74) - Removal of Poverty, Growth with Justice
• 5th Five Year Plan (1974-79) - Removal of Poverty and Self reliance
• 6th Five Year Plan (1980-85) - The emphasis same as 5th Plan
• 7th Five Year Plan (1985-90) - Food Production, Employment, Productivity
• 8th Five Year Plan (1992-97) - Employment Generation, Control of Population
• 9th Five Year Plan (1997-02) - Growth Rate of 7 percent
• 10th Five year Plan (2002-07) - Self employment and resources and development
• 11th Five Year Plan (2007-12) - Comprehensive and faster growth
• 12th Five Year plan (2012-17) - Improvement of Health, Education and Sanitation
• Achievements :
• There is a considerable rise in Net Domestic Product, savings and investment.
• India has achieved self-sufficiency in almost all basic and capital good industries and consumer good industries.
• Self-sufficiency in food grain production is achieved.
• There is a good deal of diversification in industrial structure.
• The plans have created significant  infrastructure particularly in the fields of transport, irrigation and telecommunications.
• There has been tremendous development of educational sector and there has been a significant growth in trained scientific and technical manpower. 
• Failures :
• In spite of planning, poverty exists.
• Unemployment has risen.
• Inequalities of income have not been reduced.
• There is unequal land ownership, land reforms are inadequately implemented.